Poorer Retirement

The SF Fed says that the retirement of the Boomer generation will put a drag on P/E values until 2027. Real stock prices won't return to their 2010 values until 2027! Earnings will decline in a shrinking economy for the next 16 years as Boomers sell stocks to fund retirement. Gulp!

Since most americans have less than $250k in savings, the economy is going to stagnate for the next decade and a half. Retired Boomers won't be able to spend like they did while working so sales will decline, profits will decline hence equity and earnings will decline.

We had planned to earn 6% annually to subsidize pensions and social security in retirement rather than liquidate stock. This report suggests lower earnings and a poorer retirement for most americans.